STAMFORD, Conn., Apr 20, 2009 (BUSINESS WIRE) — Standard & Poor’s Ratings Services recently announced that it has fully integrated VantageScore(R) into LEVELS(R) 6.6, Standard & Poor’s U.S. mortgage analytical model. VantageScore is the borrower credit score jointly developed by the three national credit reporting companies (Equifax, Experian, and TransUnion).

VantageScore was designed as a benchmark of borrower credit risk and likelihood of repayment. It is derived using a statistical method based on the borrower’s credit history and leverages the same algorithm across all three major credit reporting companies. Its scoring methodology provides lenders with a consistent interpretation of consumer credit files across all three major credit reporting companies and the ability to score a broad population.

Standard & Poor’s conducted an analysis of VantageScore to determine whether the score was an appropriate measure of borrower risk. This independent analysis found that VantageScore is an acceptable option for Standard & Poor’s in its ratings analysis for US residential mortgage backed securities.

SOURCE: VantageScore Solutions, LLC

Comment: Rating agencies used to rely on the FICO Score from Fair Isaac prior to the sub-prime mortgage crisis.  It appears that a move is afoot to replace the FICO score with the VantageScore

BIIA Newsletter May 2009 Issue